Was told that all shareholders on record were emailed copy of letter. If your shares are in Street Name... copy went to your broker. Was also informed it will be posted by end of today on company website.
Converted to word than cut and pasted I don't know how to paste original letter or I would.
SIPP INTERNATIONAL INDUSTRIES, INC.
October 9, 2012
Letter to Shareholders
Dear Shareholder:
For the last year, SIPP has overcome tremendous obstacles and experienced changes that were reflected in our earlier disclosure statements as well as witnessing a tremendous drop in the SIPP share price. We have overcome the obstacles placed before us and have created a “new” business plan; one that will be the most advantageous path to creating an immediate revenue stream which will be a strong foundation in which to build. As you were aware, our previous 2012 business plan, month ending September 2012, was not adhered to, nor was the contracted working capital raised to reach the goals that were outlined in the plan. By no means was this a planned or orchestrated move on our part. Quite the contrary.
In September of 2011, the company entered into an agreement with a Investor Relations firm located in Toronto, Canada. The agreement called for the IR firm to promote SIPP activities through general media outlets as well as through social media outlets and the like. The firm had also agreed to raise the company $450,000.00 which was the amount projected in the SIPP business plan. The firm was paid 3,000,000 common shares of SIPP stock for services to be rendered, inclusive of the $450,000.00 capital raise. Through a group of shareholders, the required 3,000,000 shares were privately gathered and sent to the firm. (note: It is industry standard and not uncommon for an IR firm to be paid in advance for services to be rendered.)
On Octber 9, 2011, the IR firm; absent of concscience and under our concerted protests... proceeded to sell off the 3,000,000 shares on the open market. This caused the SIPP share price to plummet from $1.90 per share down to the sub penny level of today. Needless to say, SIPP never received anything that had been agreed to with the IR firm. This debacle has caused us to tighten our purse strings, downsize, and has set us back a step or two, but it hasn't sunk the ship. However, things did look bleek for a time, but never; at any given time did we ever think about throwing in the towel. Due to certains obstacles and occurrances, the company had to cut back on expenditures inclusive of contracted services, office rental, officer and director salaries, OTC annual renewal fees as well as petty cash disbursements. Currently, we have a post office box and all officers and directors are working from their homes. In no way does this hinder our ability to move forward. All of our products are manufactured by subcontractors. Our television production equipment is being stored in very good hands and has been upgraded within the last several months. Our media buyer has rescheduled the production of Chef Homer's “So You Wanna Be A Chef???!!!” and I have recently signed on behalf of SIPP a Memorandum of Understanding to be the distributor of one of the most amazing products that you will ever have the chance to witness. (The manufacturer and SIPP will jointly announce the product launch in the coming days.)
Remember... we are a fully developed company with fully developed products. From the very beginning it has been our goal and remains our goal to market the stable of SIPP products through our own media sources and broadcasts of.... “So You Wanna Be A Chef???!!!” and through other broadcasts that are currently in the pre production stages. Also, we are working with a bevy of brokers to raise the necessary working capital required to move forward. Further, a payment was made to OTC Markets for our annual renewal fees which will allow us to once again become a “Fully Current OTC Pink” company. The back disclosure statements and financial statements are being compiled and will be submitted for filing as soon as I receive and review them. In addition, we will be posting a copy of our “new” business plan as well. We have decided to do this because it will make SIPP more transparent. It will also allow SIPP shareholders to “chart” our progress as we make our way back into the market place.
Through diversity and adversity we have worked diligently in keeping the company afloat. Over the last year, some of you have disagreed and or complained; whether it be via email, telephone, or through investment blogs. Your voices have not fallen on deaf ears. We are here for you... the shareholder. Every move that we make is based on you. We will continue this mantra and will do everything in our power to make SIPP a company that you can be proud of.
Sincerely,
Gregg Pearson
CEO/ Chairman
AI
